As an Airbnb host, understanding your payout options is crucial for managing your business effectively. PayPal, a widely used online payment system, is one of those options.

However, knowing the associated fees when using PayPal for your Airbnb payouts is essential. This guide provides detailed insights into how PayPal works with Airbnb, the fees involved, and what to consider when choosing it as your payment method.

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Does Airbnb Accept PayPal as a Payment Method?

Yes, Airbnb does accept PayPal as a method of payout for hosts! However, it’s important to understand that while Airbnb doesn’t charge a fee for using PayPal, there are PayPal fees that you will need to consider.

These include base fees, international transaction fees, fixed fees, and potential currency conversion fees. These fees can vary based on several factors, such as your country, account type, and currency. The advantage, however, of using PayPal is that payouts are typically received within one business day.

The PayPal Advantage

With a PayPal account, guests can swiftly complete their transactions without entering credit card details for every Airbnb booking. This feature is particularly beneficial for frequent travelers.

Moreover, PayPal offers a significant security advantage. It acts as a digital wallet, keeping the user’s financial information private and protected.

By using PayPal, guests are not required to share their sensitive credit card or bank account details with Airbnb or other third parties, enhancing their security and peace of mind.

In the event of any suspicious transaction, PayPal offers robust customer protection, ensuring guests are not held accountable for unauthorized charges. Empowering guests with this reliable and secure payment method significantly enhances their booking experience.

How to Set Up Your PayPal Account as a Payment Method on Airbnb

Below is a step-by-step guide to setting up PayPal as your preferred payment method on Airbnb.

1. Log in to your Airbnb account: Navigate to the Airbnb homepage and log in using your credentials.
2. Access your account settings: Click on your profile icon on the top right of the homepage, then choose ‘Account Settings‘ from the dropdown menu.
3. Go to Payments & Payouts: From your Account Settings, locate and click on the ‘Payments & Payouts‘ section.
4. Select Add Payout Method: On the ‘Payments & Payouts’ page, you will find the ‘Payout Preferences‘. Click on the ‘Add Payout Method‘ button.
5. Choose PayPal: You will see a list of available payment methods. Select ‘PayPal’ from the options.
6. Enter your PayPal details: You will be prompted to enter the email address associated with your PayPal account. Make sure the email is correctly typed to avoid any issues.
7. Complete the verification process: Airbnb will send a verification email to the email address linked to your PayPal account. Click on the link in the email to verify your PayPal account as your payment method.
8. Confirm your payout method: Once verified, your PayPal account will be listed as an available method on your Airbnb account.

By following these steps, hosts can easily add PayPal to their Airbnb account as their preferred payment methods, offering guests an additional, secure payment option.

PayPal Payment Account Fees for Hosts

While opting for PayPal as a payout option provides convenience and quick payouts, hosts should be aware of the fees involved. PayPal charges a base fee of 2.9% for each commercial transaction conducted online.

An additional 1.5% is imposed for international commercial transactions, along with a fixed fee of $0.30 per transaction for payments in US dollars. If the payment is made in a currency other than US dollars, a currency conversion fee of 4% applies.

Please note that PayPal and not Airbnb levy these fees, and they are subject to change. The rates may vary depending on factors such as your country, account type, and the currency involved. Despite these fees, the advantage of PayPal is the expedient receipt of payouts, usually within one business day.

Pros and Cons of Using PayPal as an Airbnb Host

As a highly secure online payment system, PayPal presents both advantages and disadvantages for Airbnb hosts. Understanding these can help hosts make an informed decision about whether to utilize PayPal as one of their primary payment methods.

Let’s take a closer look at the pros and cons of using PayPal as an Airbnb host:

Pros of Using PayPal as an Airbnb Host

1. Quick Payouts: One of the biggest advantages of using PayPal is the quick payout process. Typically, hosts can receive payments within one business day.
2. Convenience: PayPal is a widely accepted global payment platform, offering hosts easily accessible and convenient payment methods across most countries.
3. Security: PayPal offers robust security measures to protect users’ financial information, providing peace of mind for hosts.
4. Multiple Payment Method Options: With PayPal, hosts have the option to receive payments in various currencies and can easily convert them if needed.

Cons of Using PayPal as an Airbnb Host

1. Fees: PayPal charges fees for each transaction, which can accumulate over time. These include a 2.9% base fee, a 1.5% international transaction fee, and a $0.30 fixed fee per transaction. A 4% currency conversion fee is also if the payment method isn’t in US dollars.
2. Variable Rates: The rates charged by PayPal can vary based on factors like your country, account type, and the currency involved, adding an element of unpredictability to your overall earnings.
3. Potential Delays: While PayPal typically processes Airbnb payments quickly, there can be delays due to various circumstances, such as issues with the sender’s account or PayPal’s security checks
4. Account Limitations: If they suspect any fraudulent activity, PayPal may impose limitations on your account, such as freezing funds or suspending transactions. This can cause inconvenience for hosts and affect their ability to receive payment.

Select a Backup Payment Method

While PayPal is a popular choice, Airbnb hosts have other payout options to consider. Here’s a list of the most commonly accepted backup payment methods:

1. Google Pay: Similar to PayPal, Google Pay is a versatile platform that enables hosts to receive payments swiftly and securely. However, its not available in every country.
2. Apple Pay: Another widely used payment method, Apple Pay is a convenient option for receiving payments. It doesn’t charge fees, but like Google Pay, it’s not available in all countries.
3. Credit and Debit Cards: As a host, you can also receive payouts directly to your credit or debit card. The advantage of this method is that it avoids the additional fees involved with PayPal and other digital payment methods. However, there may be fees for international transactions.

Final Thoughts on PayPal Accounts for Hosts

While using PayPal as one of the primary payment methods on Airbnb provides undeniable convenience and speed, it also comes with its own set of fees that hosts must consider. These costs, imposed by PayPal, include a base fee for online transactions, additional charges for international transactions, a fixed fee for payments in US dollars, and a currency conversion fee for payments in other currencies.

These factors may influence a host’s decision to use PayPal as one of their preferred payment methods. However, the benefits of quick payouts and the convenience of using a globally recognized payment method often make PayPal a viable option for many Airbnb hosts. It is crucial for you to weigh these factors and choose the payment method that best aligns with your needs and financial considerations.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!